Parramatta chief executive Paul Osborne says the Eels could cut funding to their prolific juniors program if the NRL can't offer greater salary cap concessions to clubs producing local talent.

Osborne said he was frustrated by the loss of Feleti Mateo and Krisnan Inu to the Warriors on Monday, but admitted he had been resigned to the pair leaving after they were offered lucrative three-year deals by the Auckland-based club.

"It is disappointing but the reality is we just didn't have the room under the salary cap to keep them," Osborne told AAP.

"We spend a million dollars a year on our junior scheme but we may have to re-assess that and do what every other club does and just go out and sign the best youngsters from other teams.

"We just seem to be developing players for the benefit of other teams."

The Eels have one of the best development programs in the game but salary cap restrictions have forced them to offload a number of juniors in recent years, including Manly trio Trent Hodkinson, David Williams and Tony Williams, Cronulla's Albert Kelly and Newcastle's New Zealand Test backrower Zeb Taia.

"I don't think there is enough being done to help clubs who do have good junior schemes and it is disappointing to see our good juniors doing well at other clubs," Osborne said.

He said the decision to put contract talks on hold at the Eels had no bearing on Mateo and Inu leaving at the end of this season and he said he held no grudges.

"The money put on the table was something we could never match and good luck to them, let's hope we can send them on their way with a premiership," he said.

The decisions of Inu and Mateo to head across the Tasman will now leave room for the Eels to step up negotiations with exciting young five-eighth Kris Keating, who is wanted by Canterbury, as well as veteran winger Eric Grothe.

Osborne refused to elaborate on the progress but said he was hopeful they would remain.

Coach Daniel Anderson was equally disappointed to lose two key players and agreed the salary cap needed to be reviewed.

"It is one of the anomalies of the system at the moment. I am a great believer in the soul of the club being significant to the coaching of its juniors, but under the system we have that is not going to happen as much," Anderson told AAP.

"If anyone wants a salary cap per se, one which has merits would be to have concessions for local players and seasoned players, and it should be investigated."

In one of the biggest signing coups in the Warriors' history, Mateo and Inu will link with the club until the end of the 2013 season.

The news came on the same day lock Micheal Luck signed for a further two seasons.

"Keeping Lucky was critical and being able to now confirm new signings like Feleti and Krisnan - as well as Steve Rapira (from North Queensland) - gives us a lot of confidence as we look forward," Warriors coach Ivan Cleary said.

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